A recent investigation by the New York Times revealed that senior officials from the Commodity Futures Trading Commission (CFTC) who expressed concerns regarding several prediction market firms, including Polymarket, Crypto.com, and a Gemini affiliate, faced suspension and internal investigations. The officials raised alarms over the fairness of practices at Crypto.com, insufficient fraud protections at Polymarket, and regulatory compliance issues with Gemini's affiliate.
Despite these issues, interventions from then-acting CFTC chair Caroline Pham and her senior counsel were reported, facilitating favorable outcomes for the involved companies. By late 2025, two of the officials who questioned these firms were placed on administrative leave, while three others experienced similar repercussions without clear explanations for their actions. Agency staff conveyed a concerning message regarding compliance and oversight.
The CFTC has notably scaled back its enforcement actions concerning cryptocurrencies, dropping at least five investigations and reducing the number of enforcement actions from over 80 under President Biden to just two under President Trump. Pham has since left the agency to work at MoonPay, a partner of Polymarket, while her senior counsel took a position at Gemini Titan, indicating a significant shift in regulatory dynamics.